Financial Analysis: Athene (ATH) & Symetra Financial (SYA)

Athene (NYSE: ATH) and Symetra Financial (NYSE:SYA) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Athene and Symetra Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Athene 22.66% 13.31% 1.15%
Symetra Financial 3.63% 2.50% 0.23%

Insider & Institutional Ownership

48.4% of Athene shares are held by institutional investors. 10.6% of Athene shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Athene and Symetra Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Athene 0 4 11 0 2.73
Symetra Financial 0 0 0 0 N/A

Athene presently has a consensus target price of $61.45, indicating a potential upside of 19.12%.

Dividends

Symetra Financial pays an annual dividend of $0.44 per share. Athene does not pay a dividend. Symetra Financial pays out 32.4% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Athene and Symetra Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Athene $4.11 billion 2.51 $805.00 million $6.79 7.60
Symetra Financial N/A N/A N/A $1.36 N/A

Athene has higher revenue and earnings than Symetra Financial. Symetra Financial is trading at a lower price-to-earnings ratio than Athene, indicating that it is currently the more affordable of the two stocks.

Summary

Athene beats Symetra Financial on 9 of the 10 factors compared between the two stocks.

Athene Company Profile

Athene Holding Ltd. is an insurance holding company. The Company’s segments include Retirement Services, Corporate and Other. Retirement Services segment consists of the United States and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to its policyholders. Retirement Services has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one year guarantee fixed deferred annuities, immediate annuities and institutional products from its reinsurance partners. It offers two product lines: annuities and funding agreements. It offers deferred and immediate annuities, which are focused on the needs and objectives of people preparing for, approaching or living in retirement. It focuses on issuing funding agreements to institutional investors. Its life and other products include other retail products.

Symetra Financial Company Profile

Symetra Financial Corporation is a financial services company in the life insurance industry. The Company’s products are distributed domestically in all states and the District of Columbia through benefits consultants, financial institutions, broker-dealers and independent agents and advisers. It has three divisions: Benefits Division, Retirement Division and Individual Life Division. The Company’s Benefits Division provides medical stop-loss insurance, group life and disability income (DI) insurance, and limited benefit medical insurance as its principal products. The Company’s Retirement Division provides products that help its customers prepare for retirement and includes the Deferred Annuities and Income Annuities segments. The Company’s Individual Life division sells life insurance products.

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